DoD's $48.5M Nutrition Care Services contract awarded to Sodexo Management Inc. for 5 years

Contract Overview

Contract Amount: $48,458,621 ($48.5M)

Contractor: Sodexo Management Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-18

End Date: 2014-03-31

Contract Duration: 1,990 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NUTRITION CARE SERVICES AT VARIOUS MILITARY TREATMENT FACILITIES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $48.5 million to SODEXO MANAGEMENT INC. for work described as: NUTRITION CARE SERVICES AT VARIOUS MILITARY TREATMENT FACILITIES Key points: 1. Value for money appears fair given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of nearly 2000 days indicates a long-term need. 4. Fixed-price contract type shifts risk to the contractor. 5. Contract awarded by DCA, indicating a specific contracting activity. 6. Sodexo Management Inc. is the sole awardee. 7. The contract is categorized under Food Service Contractors. 8. The contract is located in Maryland.

Value Assessment

Rating: fair

The total award amount of $48.5 million over approximately five years for nutrition care services at various military treatment facilities suggests a moderate annual spend. Benchmarking this against similar large-scale food service contracts for government facilities is necessary for a precise value assessment. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively. The number of bids received (5) in a full and open competition provides some basis for price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Five bids were received, suggesting a reasonable level of competition for this service. The presence of multiple bidders generally contributes to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers by allowing multiple companies to vie for the contract, potentially driving down costs through market forces.

Public Impact

Beneficiaries include military personnel and their families receiving care at military treatment facilities. Services delivered encompass comprehensive nutrition care, likely including meal preparation, dietary planning, and nutritional support. Geographic impact is concentrated around the military treatment facilities where the services are provided, primarily in Maryland. Workforce implications include employment opportunities for Sodexo staff in food service and nutrition-related roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations over the long contract duration.
Reliance on a single contractor for essential nutrition services.
Ensuring consistent adherence to dietary and health standards across all facilities.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor cost control.
Full and open competition suggests a robust selection process.
Long-term contract provides stability for service provision.

Sector Analysis

The food service contracting sector is a significant part of the broader facilities management industry. Government contracts, particularly for large institutions like military bases, represent a substantial market segment. This contract fits within the government's need to provide comprehensive support services to its personnel, ensuring health and well-being. Comparable spending benchmarks would involve looking at other large federal food service contracts or institutional catering agreements.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless Sodexo voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting activity (DCA). Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews would be employed to ensure Sodexo meets contractual obligations. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Food Service Contracts
Healthcare Support Services
Department of Defense Food Procurement
Institutional Food Service Contracts

Risk Flags

Long contract duration may increase risk of performance degradation.
Sole awardee for a critical service requires close monitoring.
Firm-fixed-price contracts can sometimes lead to contractor cutting corners if not properly overseen.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.5 million to SODEXO MANAGEMENT INC.. NUTRITION CARE SERVICES AT VARIOUS MILITARY TREATMENT FACILITIES

Who is the contractor on this award?

The obligated recipient is SODEXO MANAGEMENT INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.5 million.

What is the period of performance?

Start: 2008-10-18. End: 2014-03-31.

What is Sodexo Management Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Sodexo Management Inc. has a significant history of providing food services and facilities management to government entities, including the Department of Defense. They have held numerous contracts for military bases, hospitals, and other federal facilities. Their experience often includes managing large-scale catering operations, ensuring compliance with strict health and safety regulations, and adapting to diverse dietary needs. While specific performance metrics for past DoD contracts are not detailed here, their continued success in securing such awards suggests a generally positive track record. However, a deeper dive into past performance evaluations, any documented disputes, or contract terminations would provide a more comprehensive understanding of their reliability and quality of service in similar contexts.

How does the awarded amount of $48.5 million compare to the estimated value or market rates for similar nutrition care services?

The awarded amount of approximately $48.5 million over roughly five years translates to an average annual value of around $9.7 million. To benchmark this effectively, one would need to compare it with contracts for similar services at other large military treatment facilities or comparable large-scale institutional settings (e.g., large hospitals, correctional facilities). Factors such as the number of meals served, the complexity of dietary requirements (e.g., therapeutic diets), geographic location (affecting labor and supply costs), and the specific scope of services (beyond just food preparation) are crucial for a fair comparison. Without these specific details and comparable contract data, it's difficult to definitively state whether this represents excellent, fair, or questionable value. However, the fact that it was awarded under full and open competition with five bidders suggests the price was deemed acceptable within the competitive landscape.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential disruptions in service delivery due to contractor performance issues, unforeseen cost increases (though mitigated by the firm-fixed-price structure), and ensuring consistent quality and adherence to health standards across multiple facilities over a long period. Mitigation strategies likely involve robust performance monitoring by the government, clearly defined service level agreements, potential penalties for non-performance, and regular quality assurance checks. The firm-fixed-price nature shifts the financial risk of cost overruns to Sodexo, incentivizing them to manage their expenses efficiently. However, the government still bears the risk of inadequate service quality or contractor default, which would necessitate contingency planning and potentially rapid re-competition or transition to another provider.

How effective has Sodexo been in managing similar large-scale food service contracts for the government in the past?

Assessing Sodexo's past effectiveness requires reviewing their performance history on comparable contracts. This would involve examining contract performance reports (CPARs), any past disputes or claims, and feedback from government agencies they have served. Sodexo's longevity and continued presence in the government contracting space suggest a level of effectiveness that meets agency requirements. However, effectiveness can be subjective and vary significantly between contracts. Factors contributing to effectiveness include reliability of service, quality of food, adherence to budget, responsiveness to issues, and compliance with regulations. A comprehensive review of their performance across multiple contracts would be necessary for a definitive judgment.

What are the historical spending patterns for nutrition care services within the Department of the Army or similar military branches?

Historical spending on nutrition care services within the Department of the Army and DoD is substantial, reflecting the ongoing need to provide comprehensive healthcare and support to service members and their families. This spending fluctuates based on factors like the number of active personnel, military readiness levels, healthcare facility upgrades, and changes in service delivery models. Contracts like this one represent a portion of that overall budget. Analyzing historical data would reveal trends in contract values, durations, competition levels, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement). Understanding these patterns helps in evaluating the current contract's value and identifying potential efficiencies or areas for cost savings in future procurements.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0407R0016

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sodexo (UEI: 261190003)

Address: 9801 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $48,458,621

Exercised Options: $48,458,621

Current Obligation: $48,458,621

Contract Characteristics

Cost or Pricing Data: NO

Timeline